Learn About Bitcoin
Cryptocurrencies have been the subject of much speculation since 2009, when Bitcoin was launched as the first entirely digital investment asset. Since then, it seems like everyone wants to learn about Bitcoin.
Bitcoin’s explosive price growth soon drew considerable attention from investors and media outlets wanting to know how to invest in Bitcoin, and hundreds of competing cryptocurrencies were launched in the years to follow, hoping to capitalize on the market’s newfound hunger for digital dollars.
Like precious metals, virtual currencies, such as those mentioned in our Bitcoin guide, operate independently from financial institutions and the stock market. In recent years, investors are coming to realize that such an asset class is particularly attractive during times of political turmoil.
There are a number of properties unique to cryptocurrencies that make them such advantageous assets to hold. Virtual currencies such as Bitcoin and Ethereum are more scarce than paper dollars and easier to verify for their authenticity. Crypto-funds are conveniently divisible and stored digitally — not in a costly vault or bank! There are a set number of Bitcoins, Ethereum, and other cryptos, and thus these currencies can not be duplicated or printed, like paper dollars. This built-in inflation hedge has encouraged a number of consumers and vendors to embrace cryptocurrencies as protection against dollar devaluation.
Bitcoin and other digital currencies are also cryptographically impossible to counterfeit, and can only be acquired through purchase or mining. The software that allows for the purchase of goods and services with cryptocurrencies such as Bitcoin is kept accountable by revolutionary blockchain technology. Paper currency does not share this advantage, and even precious metals like gold have been illegally replicated with renowned vigor over the past several years. To read more about the security of digital currencies and how CryptoWallet IRA protects your crypto-funds.
Bitcoin hits all time high of $19,783.06
The aggregate computing power of the Bitcoin Network is nearly 100,000 times larger than the world’s 500 fastest supercomputers combined.
Bitcoin is split into two coins: Bitcoin (BTH) and Bitcoin Cash (BCH), designed to work faster and cheaper than traditional cryptocurrency.
Calculated on coinmarketcap and reported by Techcrunch.
A unit of the digital cryptocurrency has exceeded the value of an ounce of gold for the first time.
Ethereum’s live blockchain is initially launched.
A federal judge declares that the US Securities and Exchange Commission could go forward with legal action against a Bitcoin-based hedge fund. Bitcoin is now a recognizable form of currency.
The US Treasury’s Financial Crimes Enforcement Network (FINCEN) publishes Bitcoin regulations to guide people who wanted to use the digital currency. At this point, Bitcoin’s market capitalization was $1 billion.
Litecoin is launched by Charlie Lee, a former Google employee. Where Bitcoin has a maximum of 21 million coins, Litecoin maxes out at 84 million.
Bitcoin achieves a market capitalization of $1,000,000. Three months later, Bitcoin would be worth one US dollar.
The first widely recognized real-world transaction with Bitcoin took place, when programmer Laszlo Hanyecz paid 10,000 Bitcoins for two Papa John’s pizzas. Back then, the technology was just over a year old, and that equated roughly $25. May 22nd is now celebrated among cryptocurrency enthusiasts as Bitcoin Pizza Day.
The first Bitcoin exchange rate was launched. At this time, one US dollar was equivalent to 1,309.03 Bitcoins.
Satoshi Nakamoto posted a research paper to an obscure cryptography listserv, describing his design for a new digital currency called Bitcoin.
The Bitcoin Revolution
A Modern Currency
The Great Recession of 2008 was a dark time in our nation’s history. Overinflation and then the sudden devaluation of the dollar caused thousands of people to lose huge sums of their hard-earned savings. Everyday investors who had been pinching pennies and setting aside their funds in 401ks and IRAs, often invested in paper markets, saw those accounts cut in half almost overnight.
Had these investors stored their wealth in assets such as Bitcoins that didn’t depend on the value of the dollar, they wouldn’t have shouldered as much of a burden and they wouldn’t have lost their shirts.
Assets that aren’t tied to the dollar are less susceptible to downward movements in the financial markets. Bitcoin Analysts have shown that these assets serve as a safe haven in times of political and economic unrest, and are often the key factor between financial disaster and security. Bitcoin is precisely this type of asset.
Your Bitcoin IRA will not be at the mercy of a stock market correction or dollar devaluation. Instead, it will enjoy all of the perks of a standard retirement plan, as well as the all the positives of cryptocurrency investment.
Simply stated, the investments in a CryptoWallet IRA aren’t subject to the whims of a bunch of politicians which means your money is hedged against bad decision making… the killer of most portfolios.
The significant difference between your CryptoWallet IRA retirement account and a traditional retirement plan is that rather than investing in stocks or bonds, your funds are invested in digital currencies, such as Bitcoin, that can not be printed like dollar bills.
How do you invest in Bitcoin?
CryptoWallet IRA works with custodian Kingdom Trust to help clients invest their existing retirement accounts into self-directed IRA accounts capable of holding virtual currencies.
Your CryptoWallet IRA account will receive tax-deferred status, allowing it to appreciate in value without immediate tax liability, and you may sell your funds, so long as they are used to reinvest in an IRA or are held in your BitGo wallet in a liquid state. After you reach the retirement age of 59 ½, you may begin withdrawing your funds without incurring any penalties.
For any additional questions, visit our Bitcoin FAQ or call our offices today and speak with one of our CryptoCurrency Specialists at (855) 630-1337!